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North Carolina Life Agent Final Exam with
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Life |!|insurance |!|and |!|Annuity |!|Replacements |!|define |!|replacement |!|as |!|- |!|correct |!| answer |!| ✔ exchanging |!|an |!|existing |!|policy |!|for |!|a |!|new |!|policy S |!|is |!|a |!|life |!|insurance |!|policyowner |!|and |!|enters |!|into |!|a |!|written |!|agreement |!|to |!| receive |!|immediate |!|cash |!|in |!|exchange |!|for |!|the |!|sale |!|and |!|transfer |!|of |!|her |!|life |!| insurance |!|policy. |!|This |!|agreement |!|is |!|referred |!|to |!|as |!|a(n): |!|- |!|correct |!|answer |!| ✔ Viatical |!|Settlement P |!|died |!|five |!|years |!|after |!|purchasing |!|a |!|life |!|policy. |!|While |!|investigating |!|the |!| claim, |!|the |!|insurer |!|discovered |!|material |!|misrepresentations |!|made |!|by |!|P |!|during |!|the |!|application |!|process. |!|Which |!|of |!|these |!|actions |!|will |!|the |!|insurer |!|take? |!|- |!| correct |!|answer |!| ✔ Beneficiary |!|will |!|be |!|paid |!|the |!|Death |!|Benefit The |!|circulation |!|of |!|written |!|literature |!|that |!|is |!|maliciously |!|critical |!|of |!|an |!| insurer's |!|financial |!|condition |!|is |!|called |!|- |!|correct |!|answer |!| ✔ Defamation Which |!|of |!|the |!|following |!|is |!|TRUE |!|about |!|a |!|qualified |!|retirement |!|that |!|is |!|"top |!| heavy"? |!|- |!|correct |!|answer |!| ✔ More |!|than |!|60% |!|of |!|plan |!|assets |!|are |!|in |!|key |!| employee |!|accounts What |!|type |!|of |!|life |!|policy |!|covers |!|two |!|people |!|and |!|pays |!|upon |!|the |!|death |!|of |!| the |!|last |!|insured? |!|- |!|correct |!|answer |!| ✔ Survivorship
Which |!|of |!|the |!|following |!|combination |!|plans |!|is |!|designed |!|to |!|protect |!|and |!| insured |!|from |!|an |!|unpaid |!|mortgage |!|balance |!|upon |!|premature |!|death? |!|- |!|correct |!|answer |!| ✔ Joint |!|Life A(n) |!|______ |!|Life |!|policy |!|offers |!|the |!|owner |!|investment |!|in |!|products |!|such |!|as |!| money-market |!|funds, |!|long-term |!|bonds |!|and |!|equities. |!|- |!|correct |!|answer |!| ✔ Variable On |!|August |!|6, |!|D |!|submitted |!|an |!|application |!|for |!|a |!|$50,000 |!|Life |!|Insurance |!| policy |!|and |!|did |!|not |!|pay |!|the |!|initial |!|premium. |!|On |!|August |!|18, |!|D |!|went |!|to |!|his |!| doctor |!|complaining |!|of |!|chest |!|pains |!|and |!|some |!|tests |!|were |!|given |!|by |!|the |!| doctor. |!|The |!|life |!|policy |!|was |!|delivered |!|by |!|the |!|producer |!|on |!|August |!| 20 |!|and |!|D |!| explains |!|what |!|had |!|recently |!|taken |!|place |!|with |!|the |!|doctor. |!|What |!|action |!| should |!|the |!|producer |!|then |!|take? |!|- |!|correct |!|answer |!| ✔ Collect |!|initial |!|premium |!| along |!|with |!|a |!|signed |!|health |!|statement All |!|of |!|these |!|statements |!|about |!|the |!|Waiver |!|of |!|Premium |!|provision |!|are |!| correct, |!|EXCEPT: |!|- |!|correct |!|answer |!| ✔ Insured |!|must |!|be |!|eligible |!|for |!|Social |!| Security |!|disability |!|for |!|claim |!|to |!|be |!|accepted An |!|employee |!|requested |!|that |!|the |!|balance |!|of |!|her |!|401(k) |!|account |!|be |!|sent |!| directly |!|to |!|her |!|in |!|one |!|lump |!|sum. |!|Upon |!|receipt |!|of |!|the |!|distribution, |!|she |!| immediately |!|has |!|the |!|funds |!|rolled |!|over |!|into |!|an |!|IRA. |!|What |!|is |!|the |!|tax |!| consequence |!|of |!|the |!|distribution |!|sent |!|to |!|this |!|employee? |!|- |!|correct |!|answer |!| ✔ Distribution |!|is |!|subject |!|to |!|federal |!|income |!|tax |!|withholding Which |!|of |!|these |!|is |!|NOT |!|considered |!|to |!|be |!|a |!|right |!|given |!|to |!|a |!|policyowner? |!|- |!| correct |!|answer |!| ✔ Modify |!|a |!|provision |!|in |!|the |!|insurance |!|contract
A |!|noncontributory |!|group |!|term |!|life |!|plan |!|is |!|characterized |!|by: |!|- |!|correct |!| answer |!| ✔ The |!|entire |!|cost |!|of |!|the |!|plan |!|is |!|paid |!|for |!|by |!|the |!|employer A |!|potential |!|client, |!|age |!|40, |!|would |!|like |!|to |!|purchase |!|a |!|Whole |!|Life |!|policy |!|that |!| will |!|accumulate |!|cash |!|value |!|at |!|a |!|faster |!|rate |!|in |!|the |!|early |!|years |!|of |!|the |!|policy. |!|Which |!|of |!|these |!|statements |!|made |!|by |!|the |!|producer |!|would |!|be |!|correct? |!|- |!| correct |!|answer |!| ✔ 20-Pay |!|Life |!|accumulates |!|cash |!|value |!|faster |!|than |!|Straight |!| Life The |!|PRIMARY |!|purpose |!|of |!|the |!|life |!|insurance |!|replacement |!|regulation |!|is |!|to |!| protect |!|the: |!|- |!|correct |!|answer |!| ✔ Interests |!|of |!|policyowners How |!|long |!|does |!|the |!|coverage |!|normally |!|remain |!|on |!|a |!|limited-pay |!|life |!|policy? |!|- |!|correct |!|answer |!| ✔ Age |!| 100 K |!|is |!|looking |!|to |!|purchase |!|Renewable |!|Term |!|insurance. |!|Which |!|of |!|these |!|types |!| of |!|Term |!|insurance |!|may |!|be |!|renewable? |!|- |!|correct |!|answer |!| ✔ Level If |!|the |!|insured |!|and |!|primary |!|beneficiary |!|are |!|both |!|killed |!|in |!|the |!|same |!|accident |!|and |!|it |!|cannot |!|be |!|determined |!|who |!|died |!|first, |!|where |!|are |!|the |!|death |!| proceeds |!|to |!|be |!|directed |!|under |!|the |!|Uniform |!|Simultaneous |!|Death |!|Act? |!|- |!| correct |!|answer |!| ✔ Insured's |!|contingent |!|beneficiary A |!|life |!|insurance |!|company |!|cannot |!|declare |!|a |!|policy |!|lapsed |!|or |!|forfeited |!|within |!|one |!|year |!|after |!|default |!|in |!|premium |!|payment, |!|unless |!|it |!|has |!|mailed |!|a |!|notice |!| indication |!|the |!|amount |!|of |!|premium |!|due. |!|This |!|requirement |!|only |!|applies |!|to |!| policies |!|with |!|and |!|- |!|correct |!|answer |!| ✔ Annual |!|premium |!|schedule
Which |!|provision |!|is |!|NOT |!|a |!|requirement |!|in |!|a |!|group |!|life |!|policy? |!|- |!|correct |!| answer |!| ✔ Accidental What |!|kind |!|of |!|life |!|policy |!|either |!|pays |!|the |!|face |!|value |!|upon |!|the |!|death |!|of |!|the |!| insured |!|or |!|when |!|the |!|insured |!|reaches |!|age |!|100? |!|- |!|correct |!|answer |!| ✔ Whole |!| Life Insurance |!|policies |!|offered |!|on |!|a |!|"take |!|it |!|or |!|leave |!|it" |!|basis |!|are |!|considered |!| what? |!|- |!|correct |!|answer |!| ✔ Contracts |!|of |!|Adhesion A |!| 55 |!|year |!|old |!|recently |!|received |!|a |!|$30,000 |!|distribution |!|from |!|a |!|previous |!| employer's |!|401k |!|plan, |!|minus |!|$6,000 |!|for |!|income |!|tax |!|withholding. |!|Which |!| federal |!|taxes |!|apply |!|if |!|none |!|of |!|the |!|funds |!|were |!|rolled |!|over? |!|- |!|correct |!|answer |!| ✔ Income |!|taxes |!|plus |!|a |!|10% |!|penalty |!|tax |!|on |!|$30, Which |!|settlement |!|option |!|pays |!|a |!|stated |!|amount |!|to |!|an |!|annuitant, |!|but |!|no |!| residual |!|value |!|to |!|a |!|beneficiary? |!|- |!|correct |!|answer |!| ✔ Life |!|Income Each |!|agent |!|who |!|initiates |!|an |!|application |!|for |!|life |!|insurance |!|or |!|annuity |!|for |!| replacement |!|of |!|an |!|existing |!|policy |!|shall |!|submit |!|which |!|of |!|the |!|following |!|as |!|a |!| part |!|of |!|the |!|application? |!|- |!|correct |!|answer |!| ✔ A |!|signed |!|statement |!|by |!|the |!| applicant |!|regarding |!|the |!|replacement Which |!|type |!|of |!|life |!|policy |!|contains |!|a |!|monthly |!|mortality |!|charge |!|as |!|well |!|as |!| self-directed |!|investment |!|choices? |!|- |!|correct |!|answer |!| ✔ Variable |!|Universal |!|Life A |!|Loss-Purchase |!|Buy |!|and |!|Sell |!|agreement |!|among |!|three |!|partners, |!|funded |!| with |!|individual |!|life |!|insurance, |!|would |!|require |!|how |!|many |!|policies? |!|- |!|correct |!| answer |!| ✔ 6
during |!|this |!|Grace |!|Period? |!|- |!|correct |!|answer |!| ✔ Full |!|face |!|amount |!|minus |!|any |!| past |!|due |!|premiums ABC |!|Insurance |!|Company |!|fails |!|to |!|pay |!|death |!|proceeds |!|after |!|satisfactory |!|proof |!|of |!|loss |!|was |!|submitted. |!|ABC |!|must |!|then |!|begin |!|paying |!|interest |!|on |!|the |!|death |!| proceeds |!|after |!|__ |!|days |!|of |!|receiving |!|proof |!|of |!|loss. |!|- |!|correct |!|answer |!| ✔ 30 The |!|Accelerated |!|Death |!|Benefit |!|provision |!|in |!|a |!|life |!|insurance |!|policy |!|is |!|also |!| known |!|as |!|a(n) |!|- |!|correct |!|answer |!| ✔ Living |!|Benefit A |!|Certificate |!|of |!|Authority |!|permits |!|an |!|- |!|correct |!|answer |!| ✔ Insurance |!|company |!|to |!|transact |!|business J |!|let |!|her |!|life |!|insurance |!|policy |!|lapse |!| 8 |!|months |!|ago |!|due |!|to |!|nonpayment. |!|She |!|can |!|reestablish |!|coverage |!|under |!|which |!|of |!|the |!|following |!|provisions? |!|- |!| correct |!|answer |!| ✔ Reinstatement |!|provision All |!|of |!|these |!|statements |!|concerning |!|Settlement |!|Options |!|are |!|true, |!|EXCEPT: |!|- |!| correct |!|answer |!| ✔ Only |!|the |!|beneficiary |!|may |!|select G |!|purchased |!|a |!|Family |!|Income |!|policy |!|at |!|age |!|40, |!|The |!|policy |!|has |!|a |!|20-year |!| rider |!|period. |!|If |!|G |!|were |!|to |!|die |!|at |!|age |!|50, |!|how |!|long |!|would |!|G's |!|family |!| receive |!|an |!|income? |!|- |!|correct |!|answer |!| ✔ 10 |!|years What |!|kind |!|of |!|life |!|insurance |!|starts |!|out |!|as |!|temporary |!|coverage |!|but |!|can |!|be |!| later |!|modified |!|to |!|permanent |!|coverage |!|without |!|evidence |!|of |!|insurability? |!|- |!| correct |!|answer |!| ✔ Convertible |!|Term
The |!|Consideration |!|clause |!|in |!|a |!|life |!|insurance |!|contract |!|contains |!|what |!| pertinent |!|information? |!|- |!|correct |!|answer |!| ✔ Amount |!|of |!|premium |!|payments |!| and |!|when |!|they |!|are |!|due What |!|type |!|of |!|life |!|policy |!|covers |!| 2 |!|lives |!|and |!|pays |!|the |!|face |!|amount |!|after |!|the |!|first |!|one |!|dies? |!|- |!|correct |!|answer |!| ✔ Joint |!|Life |!|Policy Which |!|type |!|of |!|policy |!|is |!|considered |!|to |!|be |!|overfunded, |!|as |!|stated |!|by |!|IRS |!| guidelines? |!|- |!|correct |!|answer |!| ✔ Modified |!|Endowment |!|Contract A |!|long-term |!|care |!|rider |!|in |!|a |!|life |!|insurance |!|policy |!|pays |!|a |!|daily |!|benefit |!|in |!|the |!|event |!|of |!|which |!|of |!|the |!|following? |!|- |!|correct |!|answer |!| ✔ Inability |!|of |!|the |!| insured |!|to |!|perform |!|more |!|than |!| 2 |!|Activities |!|of |!|Daily |!|Living |!|(ADL's) T |!|has |!|a |!|term |!|policy |!|that |!|allows |!|him |!|to |!|continue |!|the |!|coverage |!|after |!| expiration |!|of |!|the |!|initial |!|policy |!|period. |!|What |!|type |!|of |!|term |!|coverage |!|is |!|this? |!|- |!|correct |!|answer |!| ✔ Renewable What |!|is |!|considered |!|to |!|be |!|a |!|characteristic |!|of |!|an |!|immediate |!|annuity? |!|- |!| correct |!|answer |!| ✔ Benefit |!|payments |!|start |!|within |!|one |!|payment |!|period |!|of |!| purchase What |!|action |!|can |!|a |!|policyowner |!|take |!|if |!|an |!|application |!|for |!|a |!|bank |!|loan |!| requires |!|collateral? |!|- |!|correct |!|answer |!| ✔ Assign |!|policy |!|ownership |!|to |!|the |!|bank Credit |!|life |!|insurance |!|is |!|typically |!|issued |!|with |!|which |!|of |!|the |!|following |!|types |!|of |!|coverage? |!|- |!|correct |!|answer |!| ✔ Decreasing |!|term
Minors |!|in |!|North |!|Carolina |!|age |!|__ |!|and |!|up |!|can |!|enter |!|into |!|life |!|insurance |!| contracts |!|and |!|have |!|all |!|the |!|rights |!|that |!|come |!|with |!|ownership. |!|- |!|correct |!| answer |!| ✔ 15 According |!|to |!|North |!|Carolina's |!|rules |!|on |!|disclosure, |!|a |!|life |!|insurance |!|applicant |!|is |!|expected |!|to |!|be |!|provided |!|with |!|- |!|correct |!|answer |!| ✔ a |!|Buyer's |!|Guide |!|and |!| Policy |!|Summary P |!|and |!|Q |!|are |!|married |!|and |!|have |!|three |!|children. |!|P |!|is |!|the |!|primary |!|beneficiary |!| on |!|Q's |!|Accidental |!|Death |!|and |!|Dismemberment |!|(AD&D) |!|policy |!|and |!|Q's |!|sister |!| R |!|is |!|the |!|contingent |!|beneficiary. |!|P, |!|Q, |!|and |!|R |!|are |!|involved |!|in |!|a |!|car |!|accident |!| and |!|Q |!|and |!|R |!|are |!|killed |!|instantly. |!|The |!|Accidental |!|Death |!|benefits |!|will |!|be |!| paid |!|to |!|- |!|correct |!|answer |!| ✔ P |!|only T |!|has |!|an |!|annuity |!|that |!|guarantees |!|an |!|income |!|payment |!|for |!|the |!|rest |!|of |!|his |!| life. |!|The |!|contract |!|also |!|guarantees |!|that |!|if |!|T |!|dies |!|before |!|receiving |!|payments |!| for |!| 20 |!|years, |!|the |!|remaining |!|payments |!|will |!|be |!|paid |!|to |!|his |!|son |!|for |!|the |!| balance |!|of |!| 20 |!|years. |!|What |!|type |!|of |!|annuity |!|is |!|this? |!|- |!|correct |!|answer |!| ✔ Life |!| annuity |!|with |!|Period |!|Certain A |!|retirement |!|plan |!|that |!|sets |!|aside |!|part |!|of |!|the |!|company's |!|net |!|income |!|for |!| distributions |!|to |!|qualified |!|employees |!|is |!|called |!|a |!|- |!|correct |!|answer |!| ✔ profit- sharing |!|plan Term |!|insurance |!|has |!|which |!|of |!|the |!|following |!|characteristics? |!|- |!|correct |!|answer |!| ✔ Expires |!|at |!|the |!|end |!|of |!|the |!|policy |!|period
When |!|a |!|misrepresentation |!|on |!|a |!|life |!|insurance |!|policy |!|application |!|is |!| discovered, |!|what |!|action |!|may |!|an |!|insurance |!|company |!|take? |!|- |!|correct |!|answer |!| ✔ Void |!|the |!|policy |!|only |!|if |!|it |!|is |!|discovered |!|during |!|the |!|Contestable |!|period |!|and |!|proven |!|to |!|be |!|material N |!|purchases |!|an |!|annuity |!|by |!|making |!|payments |!|in |!|an |!|amount |!|no |!|less |!|than |!| $100 |!|quarterly. |!|This |!|describes |!|which |!|of |!|the |!|following |!|annuities? Flexible |!|Installment |!|Deferred Equity |!|indexed |!|- |!|correct |!|answer |!| ✔ Flexible |!|Installment |!|Deferred Stranger |!|Originated |!|Life |!|Insurance |!|(STOLI) |!|has |!|been |!|found |!|to |!|be |!|in |!| violation |!|of |!|which |!|of |!|the |!|following |!|contractual |!|elements? |!|- |!|correct |!|answer |!| ✔ Legal |!|Purpose |!|(Insurable |!|Interest) When |!|an |!|existing |!|life |!|insurance |!|policy |!|is |!|terminated |!|so |!|that |!|a |!|new |!|life |!| insurance |!|policy |!|can |!|be |!|purchased, |!|this |!|transaction |!|is |!|referred |!|to |!|as |!|- |!| correct |!|answer |!| ✔ Replacement Whole |!|Life |!|insurance |!|policies |!|are |!|contractually |!|guaranteed |!|to |!|provide |!|each |!| of |!|the |!|following |!|EXCEPT: |!|- |!|correct |!|answer |!| ✔ partial |!|withdrawal |!|features |!| beyond |!|a |!|surrender |!|charge |!|period Anyone |!|who |!|knowingly |!|provides |!|an |!|untrue, |!|false |!|or |!|fraudulent |!|claim |!|to |!|an |!|insurance |!|company |!|is |!|guilty |!|of: |!|- |!|correct |!|answer |!| ✔ a |!|felony C |!|is |!|trying |!|to |!|determine |!|whether |!|to |!|convert |!|her |!|convertible |!|term |!|life |!| policy |!|to |!|whole |!|life |!|insurance |!|using |!|her |!|original |!|age |!|or |!|attained |!|age. |!|What |!| factor |!|would |!|affect |!|her |!|decision |!|the |!|most? |!|- |!|correct |!|answer |!| ✔ The |!|cost
An |!|agent's |!|license |!|can |!|be |!|suspended |!|or |!|revoked |!|by |!|- |!|correct |!|answer |!| ✔ writing |!|primarily |!|controlled |!|business The |!|annuity |!|that |!|represents |!|the |!|largest |!|possible |!|monthly |!|payment |!|to |!|an |!| individual |!|annuitant |!|is |!|a(n) |!|- |!|correct |!|answer |!| ✔ Straight |!|life |!|annuity A |!|life |!|insurance |!|application |!|must |!|be |!|signed |!|by |!|all |!|of |!|these |!|EXCEPT: |!|- |!| correct |!|answer |!| ✔ Beneficiary Which |!|of |!|the |!|following |!|statements |!|is |!|correct |!|about |!|accelerated |!|death |!| benefits? |!|- |!|correct |!|answer |!| ✔ Must |!|have |!|a |!|terminal |!|illness |!|to |!|qualify The |!|Life |!|and |!|Health |!|Insurance |!|Guaranty |!|Association |!|is |!|- |!|correct |!|answer |!| ✔ funded |!|by |!|admitted |!|insurance |!|companies |!|through |!|assessments All |!|of |!|these |!|are |!|characteristics |!|of |!|an |!|Adjustable |!|Life |!|policy |!|EXCEPT |!|- |!|correct |!|answer |!| ✔ face |!|amount |!|can |!|be |!|adjusted |!|using |!|policy |!|dividends A |!|whole |!|life |!|insurance |!|policyowner |!|does |!|not |!|wish |!|to |!|continue |!|making |!| premium |!|payments. |!|Which |!|of |!|the |!|following |!|enable |!|the |!|policyowner |!|to |!|sell |!| policy |!|for |!|more |!|than |!|cash |!|value? |!|- |!|correct |!|answer |!| ✔ Life |!|settlement In |!|a |!|Life |!|insurance |!|contract, |!|an |!|insurance |!|company's |!|promise |!|to |!|pay |!|stated |!|benefits |!|is |!|called |!|the |!|- |!|correct |!|answer |!| ✔ Insuring |!|clause
Variable |!|annuities |!|may |!|invest |!|premiums |!|in |!|each |!|of |!|the |!|following, |!|EXCEPT: |!|- |!|correct |!|answer |!| ✔ Insurer's |!|corporate |!|business |!|account What |!|action |!|will |!|an |!|insurer |!|take |!|if |!|an |!|interest |!|payment |!|on |!|a |!|policy |!|loan |!|is |!|not |!|made |!|on |!|time? |!|- |!|correct |!|answer |!| ✔ automatically |!|add |!|the |!|amount |!|of |!| interest |!|due |!|to |!|the |!|loan |!|balance Boycott, |!|coercion, |!|and |!|intimidation |!|that |!|result |!|in |!|the |!|unreasonable |!|restraint |!|of |!|trade |!|are |!|prohibited |!|under |!|the |!|North |!|Carolina |!|insurance |!|laws |!|covering |!|- |!|correct |!|answer |!| ✔ Unfair |!|trade |!|practices In |!|a |!|life |!|insurance |!|policy, |!|which |!|provision |!|states |!|who |!|may |!|select |!|policy |!| options, |!|designate |!|and |!|name |!|a |!|beneficiary, |!|and |!|be |!|the |!|recipient |!|of |!|any |!| financial |!|benefits |!|from |!|the |!|policy? |!|- |!|correct |!|answer |!| ✔ owners |!|rights The |!|Commissioner |!|may |!|exempt |!|an |!|applicant |!|from |!|the |!|licensing |!|exam |!|if |!|an |!| applicant |!|has |!|obtained |!|any |!|of |!|the |!|following |!|designations, |!|EXCEPT: |!|- |!|correct |!|answer |!| ✔ Chief |!|operating |!|officer |!|(COO) The |!|Common |!|Disaster |!|clause |!|provides |!|that |!|if |!|both |!|the |!|insured |!|and |!|the |!|sole |!|named |!|beneficiary |!|were |!|to |!|die |!|in |!|a |!|common |!|accident, |!|which |!|of |!|the |!| following |!|is |!|true? |!|- |!|correct |!|answer |!| ✔ This |!|clause |!|provides |!|the |!|payment |!|of |!| proceeds |!|to |!|the |!|insured's |!|estate A |!|policyowner |!|is |!|allowed |!|to |!|pay |!|premiums |!|more |!|than |!|once |!|a |!|year |!|under |!| which |!|provision? |!|- |!|correct |!|answer |!| ✔ Mode |!|of |!|Premium What |!|benefit |!|does |!|the |!|Payor |!|clause |!|on |!|a |!|Juvenile |!|Life |!|policy |!|provide? |!|- |!| correct |!|answer |!| ✔ Premiums |!|are |!|waived |!|if |!|the |!|payor |!|becomes |!|disabled
The |!|amount |!|received |!|for |!|a |!|life |!|insurance |!|policy |!|in |!|a |!|viatical |!|settlement |!|is: |!|- |!|correct |!|answer |!| ✔ Less |!|than |!|the |!|death |!|benefit A |!|policy |!|owner's |!|rights |!|are |!|limited |!|under |!|which |!|beneficiary |!|designation? |!|- |!| correct |!|answer |!| ✔ Irrevocable An |!|individual |!|life |!|insurance |!|policy |!|issued |!|in |!|North |!|Carolina |!|MUST |!|have |!|a |!| grace |!|period |!|for |!|premium |!|payment |!|of |!|how |!|many |!|days? |!|- |!|correct |!|answer |!| ✔ 31 Which |!|of |!|these |!|is |!|an |!|element |!|of |!|a |!|Variable |!|Life |!|policy? |!|- |!|correct |!|answer |!| ✔ A |!|fixed, |!|level |!|premium A |!|Renewable |!|Term |!|Policy |!|is |!|renewable |!|at |!|the |!|option |!|of |!|the |!|- |!|correct |!| answer |!| ✔ insured D |!|needs |!|life |!|insurance |!|that |!|provides |!|coverage |!|for |!|only |!|a |!|limited |!|amount |!|of |!|time |!|while |!|also |!|paying |!|the |!|lowest |!|possible |!|premium. |!|What |!|kind |!|of |!|policy |!| is |!|needed? |!|- |!|correct |!|answer |!| ✔ Level |!|Term Which |!|statement |!|about |!|a |!|whole |!|life |!|policy |!|is |!|correct? |!|- |!|correct |!|answer |!| ✔ Cash |!|value |!|may |!|be |!|borrowed |!|against When |!|an |!|existing |!|life |!|insurance |!|policy |!|is |!|being |!|reissued |!|with |!|a |!|reduction |!|in |!|cash |!|value, |!|the |!|producer |!|must |!|sign |!|the |!|- |!|correct |!|answer |!| ✔ Notice |!| Regarding |!|Replacement |!|of |!|Life |!|Insurance |!|or |!|Annuity
Who |!|is |!|normally |!|considered |!|to |!|be |!|the |!|owner |!|of |!|a |!|403(b) |!|tax-sheltered |!| annuity? |!|- |!|correct |!|answer |!| ✔ The |!|employee Which |!|of |!|these |!|types |!|of |!|life |!|insurance |!|allows |!|the |!|policyowner |!|to |!|have |!| level |!|premiums |!|and |!|to |!|also |!|choose |!|from |!|a |!|selection |!|of |!|investment |!|options? |!|- |!|correct |!|answer |!| ✔ Variable |!|Life T |!|applies |!|for |!|a |!|life |!|insurance |!|policy |!|and |!|is |!|told |!|by |!|the |!|producer |!|that |!|the |!| insurer |!|is |!|bound |!|to |!|the |!|coverage |!|as |!|of |!|the |!|date |!|of |!|the |!|application |!|or |!| medical |!|examination, |!|whichever |!|is |!|later, |!|provided |!|that |!|T |!|is |!|an |!|acceptable |!| risk. |!|What |!|item |!|is |!|given |!|to |!|T? |!|- |!|correct |!|answer |!| ✔ Conditional |!|receipt Which |!|of |!|the |!|following |!|actions |!|require |!|a |!|policyowner |!|to |!|provide |!|proof |!|of |!| insurability |!|in |!|an |!|Adjustable |!|Life |!|policy? |!|- |!|correct |!|answer |!| ✔ increase |!|face |!| amount What |!|kind |!|of |!|special |!|need |!|would |!|a |!|policyowner |!|require |!|with |!|an |!|Adjustable |!|Life |!|insurance |!|policy? |!|- |!|correct |!|answer |!| ✔ Flexible |!|premiums Rick |!|recently |!|died |!|and |!|left |!|behind |!|an |!|individual |!|IRA |!|account |!|in |!|his |!|name. |!| His |!|widow |!|was |!|forwarded |!|the |!|balance |!|of |!|the |!|IRA. |!|The |!|widow |!|qualifies |!|for |!| the |!|- |!|correct |!|answer |!| ✔ marital |!|deduction Which |!|of |!|the |!|following |!|statements |!|regarding |!|a |!|Tax |!|Sheltered |!|Annuity |!|(TSA) |!|is |!|incorrect? |!|- |!|correct |!|answer |!| ✔ the |!|income |!|from |!|the |!|TSA |!|is |!|received |!| income |!|tax-free
Unfair |!|discrimination |!|is |!|described |!|as |!|- |!|correct |!|answer |!| ✔ charging |!|different |!| rates |!|for |!|persons |!|in |!|the |!|same |!|class Which |!|of |!|these |!|provisions |!|require |!|proof |!|of |!|insurability |!|after |!|policy |!|has |!| lapsed? |!|- |!|correct |!|answer |!| ✔ Reinstatement In |!|North |!|Carolina, |!|which |!|of |!|the |!|following |!|MUST |!|be |!|delivered |!|to |!|a |!| policyowner |!|upon |!|the |!|sale |!|of |!|an |!|individual |!|life |!|insurance |!|policy? |!|- |!|correct |!| answer |!| ✔ A |!|Policy |!|Summary |!|and |!|Buyer's |!|Guide Which |!|of |!|the |!|following |!|statements |!|about |!|noncontributory |!|employee |!|group |!| life |!|insurance |!|is |!|FALSE? |!|- |!|correct |!|answer |!| ✔ A |!|minimum |!|number |!|of |!| employees |!|is |!|required |!|to |!|participate Which |!|of |!|these |!|statements |!|concerning |!|an |!|Individual |!|Straight |!|Life |!|annuity |!|is |!|accurate? |!|- |!|correct |!|answer |!| ✔ Payments |!|are |!|made |!|to |!|an |!|annuitant |!|for |!|life Which |!|is |!|true |!|concerning |!|a |!|Variable |!|Universal |!|Life |!|policy? |!|- |!|correct |!|answer |!| ✔ Policyowner |!|controls |!|where |!|the |!|investment |!|will |!|go |!|and |!|selects |!|the |!| amount |!|of |!|the |!|premium |!|payment What |!|kind |!|of |!|life |!|insurance |!|policy |!|pays |!|a |!|specified |!|monthly |!|income |!|to |!|a |!| beneficiary |!|for |!| 30 |!|years |!|and |!|then |!|pays |!|a |!|lump |!|sum |!|benefit |!|at |!|the |!|end |!|of |!| that |!| 30 |!|years? |!|- |!|correct |!|answer |!| ✔ Family |!|Maintenance |!|Policy
